PLEASE EXPLAIN EACH STEP

Kwon Co. borrows $290,000 cash on December 1, 2012, by signing a 90-day, 9% note with a face value of $290,000.

rev: 04_12_2012

4.

value: 10.00 points

Required information

1.

On what date does this note mature?

	February 24, 2013.
	February 25, 2013.
	February 26, 2013.
	February 27, 2013.
	March 1, 2013.

rev: 04_12_2012, 11_07_2013_QC_37805

5.

value: 10.00 points

Required information

2.	What is the amount of interest expense in 2012 from this note? (Use 360 days a year. Do not round intermediate calculations and round your final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Interest expense

$

rev: 04_12_2012

6.

value: 10.00 points

Required information

3.	What is the amount of interest expense in 2013 from this note? (Use 360 days a year. Do not round intermediate calculations and round your final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Interest expense

$

rev: 04_12_2012

7.

value: 10.00 points

Required information

4(a)	Prepare journal entries to record issuance of the note at issuance. (Omit the "$" sign in your response.)

Date		General Journal	Debit	Credit
Dec.	1	(Click to select)CashInterest payableAccounts receivableAccounts payableSalaries expenseInterest expenseNotes payableNotes receivable
		(Click to select)Notes payableCashSalaries expenseInterest payableAccounts payableNotes receivableInterest expenseAccounts receivable

4(b)	Prepare journal entries to record accrual of interest at the end of 2012. (Use 360 days a year. Do not round intermediate calculations and round your final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Date		General Journal	Debit	Credit
Dec.	31	(Click to select)Notes receivableNotes payableInterest expenseInterest payableSalaries expenseAccounts receivableAccounts payableCash
		(Click to select)Notes payableNotes receivableAccounts payableInterest payableAccounts receivableInterest expenseSalaries expenseCash

4(c)	Prepare journal entries to record payment of the note at maturity. (Use 360 days a year. Do not round intermediate calculations and round your final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Mar. 1	(Click to select)Notes payableInterest expenseNotes receivableAccounts receivableInterest payableAccounts payableCashSalaries expense
	(Click to select)Notes payableAccounts payableInterest payableNotes receivableCashAccounts receivableInterest expenseSalaries expense
	(Click to select)CashInterest payableNotes receivableAccounts payableInterest expenseNotes payableSalaries expenseAccounts receivable
	(Click to select)Salaries expenseAccounts payableNotes receivableNotes payableInterest payableInterest expenseAccounts receivableCash